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A quasi-governmental franchise agency in Malaysia, Perbadanan Nasional Bhd wants franchisors mandated to register with the government. Domestic Trade, Cooperative and Consumerism Minister Ismail Sabri Yaakob told FreeMalaysiaToday on the reason why:
“With the new amendments, the franchisee will need to register with MFA as well. This way, we will be able to keep tabs on both parties.” He said this is necessary as there were many cases where the franchisor disappeared after setting up a few franchise centres, leaving the franchisees without support and help.
The agency also will spend the equivalent of US$6.3 million to set up a "training academy" to educate prospective franchisees. The agency thinks they are not getting proper training from franchisors. Malaysia Minister Yaakob again explained the problem it is trying to fill:
“…if the franchisors fail to train their candidates, the academy will train them instead.”